We expect that our logistics costs can compete with those of other countries, for which we have to enhance our competitiveness
Jakarta (ANTARA) - President Joko Widodo (Jokowi) believes that the merger of four state port operators into Pelindo will strengthen the port sector's logistics services to become better, cheaper, and swifter as well as increase Indonesia's competitiveness.

"We expect that our logistics costs can compete with those of other countries, for which we have to enhance our competitiveness," President Jokowi stated while inaugurating the merger of Pelindo and the Wae Kelambu Multipurpose Terminal at the Labuan Bajo Port in West Manggarai, East Nusa Tenggara (NTT) Province, Thursday.

The head of state also requested that following the merger, Pelindo starts seeking partners for port companies with extensive networks, so that Indonesian goods can penetrate the global supply chain.

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"The goal is to ensure that our products can enter the global supply chain and be available everywhere," Jokowi affirmed.

The head of state lauded SOEs Minister Erick Thohir and related stakeholders of SOEs for realizing this merger. As a result of this corporate action, BUMN Pelindo has become the eighth-largest container terminal operator in the world, with a total container flow or throughput of 16.7 million twenty-foot equivalent units (TEUS).

Currently, Indonesia's logistics costs reach 23 percent, or still lags behind neighboring countries, with an average of 12 percent. This reflects inefficiency on the part of Indonesia's logistics, the president noted.


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State-owned PT Pelabuhan Indonesia, or Pelindo, earlier comprised Pelindo I, Pelindo II, Pelindo III, and Pelindo IV, with each of them becoming the port operators in different areas. However, President Jokowi merged the four port operators through Government Regulation Number 101 of 2021 on the Merger of PT Pelindo I, III, and IV into PT Pelabuhan Indonesia II (Persero). The regulation was signed by President Jokowi on October 1, 2021.

On the occasion, President Jokowi also inaugurated the Multipurpose Wae Kelambu Terminal of the Labuan Bajo Port, which became a container port and separated from the Labuan Bajo tourist port.

"I praise the work at the Multipurpose Wae Kelambu Terminal. We started in August 2020, and now it is complete. Praise God," Jokowi conveyed.

First Lady Iriana Joko Widodo, Minister of SOEs Erick Thohir, Minister of Transportation Budi Karya Sumadi, Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono, Cabinet Secretary Pramono Anung, and related officials were also present at the occasion.


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Translator: Indra Arief P, Resinta S
Editor: Fardah Assegaf
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